MTI tax issue in South Africa expected to drag into 2024

The Mirror Trading International tax issue in South Africa is expected to drag into 2024.

As part of ongoing liquidation proceedings, last July South Africa’s Revenue Service (SARS) signalled intent to bill MTI’s liquidators for $34.46 million.

SARS eventually followed up through an intervention motion, filed in October 2022.

The amount purportedly represents what MTI owed in unpaid taxes. That Mirror Trading International was a Ponzi scheme doesn’t appear to be of concern.

If SARS prevails, a large chunk of the ~$60 million recovered will be turned over to SARS. When SARS first signalled their intent last year, the amount to be billed represented all but a fraction of then recovered funds.

Naturally, SARS’ intervention prompted MTI liquidators to file an objection.

As reported by News24 (paywalled) on March 2nd;

MTI’s liquidators have objected to the tax agency’s assessment, saying they owe no tax.

But the objection process is expected to take up to a year to come to some kind of conclusion.

The liquidators cannot pay out any funds during this period.

The latest blow to MTI victims follows a report that, since their appointment in 2021, liquidators have spent millions to recover pennies on the dollar.

If that keeps up, whether there will even be anything left for SARS to collect in 2024 remains unclear.

Mirror Trading International was a $1.7 billion dollar Ponzi scheme run out of South Africa. The scam collapsed in October 2020.

The majority of funds invested into MTI were stolen by CEO Johannes Steynberg and suspected owners Clynton and Cheri Marks (right).

Due to continued inaction by South African authorities, those funds remain unrecovered.

Steynberg is stuck in extradition limbo, following his late 2021 arrest in Brazil. The Marks crime family remains at large in South Africa.